Net income rose 1 percent to 3.07 billion euros ($4
billion) in 2011, the Paris-based maker of Zenith watches said
today. That compares with the 3.06 billion-euro average of 17
analysts’ estimates compiled by Bloomberg. Growth was 34 percent
excluding a gain that boosted profit in 2010, LVMH said.

Revenue in the fourth quarter climbed 20 percent, or 12
percent excluding acquisitions and currency shifts, the company
said. Luxury-goods makers including Salvatore Ferragamo SpA (SFER) have
reported double-digit sales growth in 2011 as wealthy clients
around the world splurge on expensive bags and watches, even as
concern mounts about a possible recession in Europe. Luxury
demand may rise 10 percent in 2012, half last year’s pace,
according to Thomas Mesmin, an analyst at CA Cheuvreux.

“Despite an uncertain economic environment in Europe, LVMH
is well-equipped to continue its growth momentum across all
business groups in 2012,” the company said in the statement.

LVMH fell 0.3 percent to 126.4 euros in Paris trading
today. The earnings were released after markets closed.

Growth in fourth-quarter revenue was led by the selective
distribution unit, which includes DFS duty-free shops and the
Sephora cosmetics chain. Sales at the division rose 24 percent
to 2.06 billion euros. Fashion and leather-goods revenue
increased 19 percent to 2.52 billion euros, while wine and
spirits sales advanced 9.4 percent to 1.22 billion euros.

Annual group sales climbed 16 percent to 23.7 billion euros
on a reported basis and 14 percent excluding the effects of
acquisitions and currency shifts, the company said.

LVMH said it will propose a dividend increase of 24 percent
to 2.6 euros a share at a shareholders meeting on April 5.